By Gavin Boyle
Earlier this week, Warner Bros. Discovery (WBD) officially announced it is separating into two businesses. Here’s how the two men chosen to lead those companies were picked.
“Since the combination that created WBD, we have transformed our business and improved our financial position while providing world class entertainment to global audiences. We continue to prioritize ensuring our global linear networks business is well positioned to continue to drive free cash flow, while our streaming and studios business focuses on driving growth by telling the world’s most compelling stories,” current WBD CEO David Zaslav explained in December when the split was first announced.
“By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today’s evolving media landscape,” Zaslav added earlier this week.
With the split now shaping up, it has been revealed that Zaslav will continue to lead WBD’s streaming and studios business while WBD CFO Gunnar Wiedenfels will helm the linear TV company.
Related: Why Did Comcast Spin Off Its Cable Channels?
The studio and streaming business will largely operate the same as WBD currently does, without the burden of the sagging linear TV assets. Though the split will relieve the company of much of its current $34 billion debt, Zaslav has deep industry ties, which will continue to serve the company as they focus on movies and larger franchises.
Meanwhile, Wiedenfels has the much tougher job of taking over the linear TV assets and attempting to create a profitable business with them — while also shoulding most of the company’s current debt. Wiedenfels’ background, however, makes him well suited for the job, given that he has worked in finance his entire career. Thus, he will be able to keep costs low while continuing to create the most out of linear TV.
WBD is not the only entertainment company to choose to split its linear TV assets from the rest of its business. Comcast has announced it will do the same, potentially creating an opportunity for their linear TV assets to combine with WDB’s and create a conglomerate that can survive the age of streaming. At the same time, these splits allow the larger brands to rid themselves of a dying business and shield their more valuable assets if they were to go under.
Both Zaslav and Wiedenfels have difficult jobs ahead of them, but both are ready to take on their upcoming leadership roles and steer their new companies towards better days.
Read Next: Warner Bros. Discovery’s Split Explained
Questions or comments? Please write to us here.
- Content: +1Share:
- Content: +1